The Mortgage Banker’s Association (MBA) said this week that the total U.S. commercial/multifamily debt outstanding had for the first time broke the $3 trillion mark by climbing to $3.01 trillion at the end of the first quarter of 2017.
The total oustanding commercial/multifamily mortgage debt outstanding was up by $37.6 billion in the first quarter of 2017, an increase of 1.3% above the fourth quarter of 2016, with three of the four major investor groups increasing their holdings.
The MBA said that the four major investor groups are: bank and thrift; commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues; federal agency and government sponsored enterprise (GSE) portfolios and mortgage backed securities (MBS); and life insurance companies.
Multifamily mortgage debt saw some big gains as it hit $1.17 trillion, an increase of $23.4 billion, or 2.0%, from the fourth of quarter of 2016.
As expected, commercial banks have the biggest share of commercial/multifamily mortgages with a total of 41%, which equates to $1.2 trillion.
“The amount of commercial and multifamily mortgage debt outstanding continued to grow during the first quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Almost two-thirds of the growth came from increases in multifamily mortgage debt outstanding, and 80 percent of that growth came from portfolios and MBS held or guaranteed by federal government agencies and the GSEs.”
Woodwell continued: “In addition, recent releases from the Federal Reserve show that during the second quarter of 2017, bank multifamily portfolios stopped growing and remain relatively flat, while their holdings of other commercial property loans have continued to grow.”